Revenue at fault over pension tax debacle

SEVEN years ago I called to the tax office and informed them that I was then in receipt of an OAP in addition to a private pension.

Each year I received a tax-free allowance with deductions made for the relevant amount of OAP — increased each year for budget adjustments. Two years ago my wife reached 66 years and an increase was received in OAP. I was not aware at the time what the increase was for and assumed it may have been a budget adjustment. I have claimed and received a tax rebate for medical expenses for the past seven years and last year received a letter stating my tax affairs were in order after submitting tax receipts when requested to do so. I understand that I am now liable for a reduction in TFA for 2012 as my pension increase was as a result of my wife reaching the age of 66. However, I have been informed that I will be liable for arrears for the past two years.

I dispute this on the grounds that the Revenue had my wife’s details on record and were deducting OAP from my TFA from their records and not from figures I returned to them. I believe the Revenue were at fault for not deducting the additional monies from my TFA and I intend to pursue the matter through a legal representative and would advise others to do likewise.